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Pay As You Drive (PAYD) vs Comprehensive Car Insurance | Which One To Pick?

In India, a car owner is obliged to carry car insurance while driving. Well, the insurance is not just to save your pocket from challans and excessive spending in case of emergency. Pretty straightforward, right? But now if car insurance is compulsory, which one to pick, Pay As You Drive or Comprehensive Car Insurance?

Car Insurance deductibles

Comprehensive Car Insurance

The most common and conventional car insurance most buy is comprehensive car insurance. The coverage in comprehensive car insurance covers the damage incurred by the insured vehicle along with third-party liabilities.

Here is more about the Pay As You Drive Car Insurance | Everything You Need To Know

Depending on the insurance coverage opted for, the insurance policy may have multiple add-ons that include, zero depreciation cover, Bi-fuel kit cover, No Claim Bonus cover, etc. All these add-ons benefit the customer and aid in a ton of savings.

What benefits are offered with comprehensive car insurance?

car insurance claim | GoMechanic
Save time and money on insurance claim

Depending upon the different insurance providers, the benefits include,

  • Coverage for personal accidents for the policyholder and driver.
  • provides third-party liability coverage and does not require a separate third-party insurance policy to insure the vehicle.
  • A comprehensive auto insurance policy offers a number of supplemental coverage options. To supplement the coverage provided by the comprehensive auto insurance policy, you can choose add-on coverage.

Now, let’s have a look at the pay-as-you-drive car insurance

Pay-As-You-Drive Car Insurance

How To Reduce Your Car Insurance Premium
Reduce Insurance Premium

Well, pay as you drive is a type of comprehensive auto insurance that levies a cost based on various factors that also include, how much the car is used and how it is used. Depending on the overall amount of kilometers traveled and the way the driver drives the car, it employs a telematics device to track how frequently the vehicle is used.

GoMecianic News: Third-Party Insurance Prices Hiked By Up To 40%!

With pay-as-you-drive car insurance, customers can set a distance cap for their vehicle and receive a discount on the standard cost. The reduction in the premium increases as the limit decreases. Only the limit that the buyer selects will be covered by the insurance. Three slabs—7,500 km, 5,000 km, and 2,500 km—are typically offered by an insurance firm for insurance coverage.

Benefits of Pay as you drive insurance

Apart from cost savings, there are other benefits of having pay-as-you-drive car insurance, let’s discuss.

  • Savings on Insurance Premiums

    The majority of the time, as the company charges you on vehicle usage, the pay-as-you-drive insurance costs are relatively low than conventional car insurance. This means, depending upon the way you drive, you can save by up to 15%-20% on your insurance premiums.

  •  3rd party coverage

    Many insurance providers having this policy also have a Third-party liability only cover for the vehicle. 

  • Added Telematics
    Also, the pay-as-you-drive car insurance also gets additional perks of telematic features. These include features like real-time tracking.

What are the Key differences between the two?

There are and can be a lot of things that are common in both car insurance policies. However, the major difference lies in the way the premium and the tenure are calculated in both the insurance.

Wherein comprehensive insurance the vehicle owner pays the premium for the whole year, irrespective of how much the car is driven or not driven altogether.

On the contrary, as the name suggests, on the other end, with the pay-as-you-drive car insurance, you’ll pay only on the time you have driven the vehicle. Hence this allows for saving more on the latter type of car insurance.

How much can you save?*

Driving Kilometer Slab Discounts Insurance Premium Difference/Savings
Comprehensive Car Insurance Nada Rs.10,000 Nada
7,500kms 10% Rs.9,000 Rs.1,000
5,000kms 15% Rs.8,500 Rs.1,500
2,500kms 25% Rs.7,500 Rs.2,5000

*NOTE: The above data is for representation only

What else are the benefits of Pay-as-you-drive car insurance?

GoConnect OBD- Smart Device for a Smarter Car
GoConnect OBD- Smart Device for a Smarter Car

Apart from saving, this pay-as-you-drive car insurance also gets you a telematics device that also can be a boon while driving.

But what is a telematics device?

GoConnect in the GoMechanic App
GoConnect in the GoMechanic App

Just like any other telematics device, GoMechanic’s GoConnect is an OBD (On-Board Diagnostics) device that plugs into your car’s OBD port. But in addition, it lets you keep a track of the vital parameters of your vehicle. The GoConnect OBD can is compatible with all the cars manufactured after 2010 as have the OBD gen 2 port.

More about the GoConnect OBD 2.0 | 11 Frequently Asked Questions

Now as the GoConnect is plugged in, a few minutes after installation, head on to the My Car section on the GoMechanic App and initialize GoConnect Pairing. GoConnect will then scan through the various systems of your car and display all the vitals, right on the app. This smart device with AI-enabled features will help you keep track of a lot of things related to your car.


The new GoMechainc GoConnect OBD 2.0 not only has smart tracking features but also boasts of several safety features, that include, Emergency calls, an Anti-theft alert, and two alerts that might just come in handy in the typical traffic and road situations that we have in our country.

Interesting Read: GoMechanic Launches GoConnect OBD 2.0 With SOS Services


So, if you want to save big along with tracking all the vitals of our car, the pay-as-you-drive car insurance can be just right for you. So, if you have a GoMechanic OBD2.0 you, are eligible to apply for the pay-as-you-drive car insurance. But if you haven’t got one, let me help you with that.

Wondering where to buy it from? Worry not, The GoConnect device is available online at Flipkart as well as Amazon. But, PRO TIP!!!

The GoConnect OBD 2.0 is available at an introductory price of INR 1,999/- only!

Follow the link to download the official GoMechanic Android and iOS App by clicking on this link

But, if you already have the GoMechanic app on your phone, click here to get your very own GoConnect OBD 2.0

So, that is all about the difference between pay-as-you-drive insurance and comprehensive car insurance. Let us know in the comment section, how much did you save with features?

Utkarsh Bhardwaj
Utkarsh Bhardwaj
Technical Content Strategist at GoMechanic | Big Time Petrolhead with the passion for building cars and driving those beauties.


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